(LEX 18) – New data from the Federal Reserve shows that Americans are racking up more debt than at any time in the past decade. In February, consumer debt jumped nearly $42 billion, including a jump of more than 20% for revolving credit.
Experts say there are a few factors related to the high numbers. Many Americans haven’t let go of the recent mindset with low interest rates and steady amounts of money coming from the federal government, said Jeff Sheppard, financial adviser to the Family Wealth Group and former basketball star. British ball.
In many cases, people haven’t adjusted their spending habits to match their changing financial situation, which includes factors like inflation, Sheppard notes.
People, he said, just don’t plan.
“People are just living for the day, taking home what they can and dealing with the consequences as they come up and that’s a lot of issues right now,” he said. .
To avoid going into debt on your credit card, he recommends that you write a list of your expenses and a list of the money you receive. It’s important to sit down with someone and make a financial plan, to make sure that when you pay, you know how you’re going to pay it and where that money will come from.
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